Pepe [PEPE] has emerged as a memecoin with huge growth potential in the fourth quarter of 2024. After a consolidation phase, PEPE experienced an astonishing growth of more than 1000%, attracting widespread attention.
The PEPE/USDT pair is currently forming a triangle pattern after initially being caught in a sideways market following its launch on the Ethereum blockchain.
This consolidation, coupled with the tightening Bollinger Bands, suggests that a breakout could be imminent. With historical trends supporting it, traders are positioning themselves for a possible bullish run this year.
Currently, the stock is consolidating within a triangle pattern with tightening Bollinger Bands. This pattern usually signals a near-term breakout.
Historical data shows that such patterns usually precede large price moves. Chaikin Money Flow has also broken out of the wedge pattern, suggesting that the accumulation phase is about to end.
As CMF rises, buying pressure also increases, which suggests that the memecoin could experience a major uptick.
The long period of consolidation since May further supports the potential for a strong rebound if market conditions favor altcoins.
Pepe financing rate turns green
The funding rate has turned green, providing further support for the bullish outlook for Pepe memecoin.
When the funding rate is green, it indicates that more traders are long, reflecting positive sentiment.
This situation means that long traders pay short traders to maintain their positions. This trend usually leads to increased demand for the asset and rising prices.
However, this also increases the risk of long positions being liquidated if the market changes.
Address holdings and whales
Analyzing from the USD holding addresses, whales continued to increase their holdings, and PEPE with holdings exceeding USD 10 million rose by 5.26%.
While the number of retail traders with smaller positions also increased, the number of medium-sized traders decreased slightly.
Nonetheless, continued active buying by whales indicates strong confidence in PEPE’s potential. However, this also increases the risk of long positions being liquidated if the market changes.
New adoption rate
Pepe’s new adoption rate is 26%, reflecting a steady trend with no decline. This steady adoption rate suggests that more traders are getting involved, albeit not as fast as some enthusiasts would like.
Nonetheless, the steady adoption rate is generally positive and indicates a growing interest in PEPE.
Overall, PEPE shows good signs for potential price increases. Key metrics, positive funding rates, strong whale activity, and steady adoption all contribute to a bullish outlook as we approach Q4 2024.
That’s all for this chapter. See you next time!
